An insurance company cannot take “shelter” under terms of the policy for repudiating a claim if it had issued it after verifying the credentials of a policy holder’s statements, a consumers’ forum has held.
“The policy holder has testified on oath that before issuance of the policy, the insurance company’s official visited the premises of the complainant,” the Delhi District Consumer Disputes Redressal Forum (Central) said.
“Thus, inspite of knowing that the premises was residential, the company issued the policy. Now, it can not take shelter under terms of the policy that he violated it by storing insured goods at residential premises,” the Forum, comprising President B B Choudhary and Member M Siddiqui,said.
The Forum directed the New India Assurance Company Limited to pay a sum of Rs 3.86 lakh as loss claim to the partnership firm, Medilife Technologies, besides a compensation of Rs 25,000 for harassment and mental agony.
The firm, which deals in medical equipment, got itself insured with the company for the period between 2004-05.
It lodged the claim after a burglary but the company rejected it, saying the incident took place in residential premises while the insurance is for commercial premises.
“There is deficiency in service. The policy holder suffered harassment and mental agony because of delay on the part of the insurance company to take decision of the claim and repudiating the claim,” the Forum said.